Propel Holdings (PRL) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $179.6 million, up 26% year-over-year, and record adjusted EBITDA of $43.7 million, with adjusted net income reaching $24.8 million, up 29% year-over-year.

• Net income rose 7% year-over-year to $16.2 million; diluted EPS up 7% to $0.38.

• New customer originations grew 34% year-over-year (43% including Lending-as-a-Service), driven by geographic expansion, new products, and broader distribution channels.

• Lending-as-a-Service revenue surged 150% year-over-year to $11.1 million; Propel UK revenue rose 53% to $17.3 million.

• Board approved a 6% increase in quarterly dividend, marking the 12th consecutive quarterly increase, with Q3 2026 dividend set at C$0.255 per share.

Financial highlights

• Total originations funded increased 25% year-over-year to $243.4 million; ending CLAB reached a record $639.1 million, up 23%.

• Adjusted diluted EPS up 28% to $0.58; Adjusted return on equity improved to 35% annualized.

• Annualized revenue yield increased to 117% from 114% in the prior year period.

• Salaries and G&A as a percentage of revenue declined, reflecting operating leverage.

• Loans and Advances Receivable reached $492.3 million, up 21% year-over-year.

Outlook and guidance

• Expect accelerated growth in Q3 and Q4, with Lending-as-a-Service and QuidMarket anticipated to drive further revenue and margin expansion.

• Revenue yields projected between 115%-120% for the remainder of the year, with potential upside.

• Margin expansion expected in the second half of the year relative to last year, despite seasonality.

• Lending-as-a-Service expected to approach 10% of total revenues by year-end, with continued strong investor demand.

• Strategic investments and disciplined execution are expected to drive long-term platform expansion.